There are different payment options available to help you pay for your solar panel system. Each option has its own advantages and disadvantages depending on factors like the total costs, repayment terms, and incentives.
There are 3 primary ways to purchase solar panels: solar loan, solar lease/power purchase agreement (PPA), and cash purchase.
1. Solar Loan
Solar loans are an excellent financing option if you want to go solar and own the system but need more money for a down payment. With a solar loan, you only need to pay your monthly utility bill.
Solar loans differ from solar leases or PPA in that you become the system owner. In contrast, with a solar lease/PPA, a third party owns the system. By obtaining a solar loan, you can benefit from rebates and incentives for the solar panel system.
2. Solar Lease / Power Purchase Agreement (PPA)
Choosing to finance a solar panel system through a PPA can provide you with the benefits of solar energy without the upfront cost and maintenance responsibilities. The solar company or PPA financier will take care of everything, allowing you to enjoy the benefits of clean and renewable energy on your property.
As the solar panel system is not under your ownership, you will not be eligible for any financial incentives or rebates associated with solar energy. It is the company that owns the system that will receive these benefits.
3. Cash Purchase
Investing in a solar panel system with cash is a wise choice to maximize your savings. It provides a better return on investment than investing in the market. It's essential to remember that solar is a significant expense, but the long-term benefits make it a worthwhile investment.
What's the best purchase option for me?
When considering the installation of solar panels for your home, it's essential to take the time to evaluate all of the options available and select the one that's the best fit for your unique needs. It's just like any other home improvement or upgrade project - putting in the effort to find the right solution will lead to long-term satisfaction and benefit.
At Midwest Solutions Inc., we are here to help you select the most suitable financing option to meet your personal requirements.